How Do I Know My Company Tax Deposit Frequency?
Background
Your company’s federal payroll tax deposit frequency (how often you have federal tax deposit due dates) depends on the amount of federal taxes you owe. Federal taxes include employee federal income tax, employer and employee Social Security, and Medicare taxes. Here is how to determine your federal deposit frequency:
For 2025, your “lookback period” is from 7/1/2023 to 6/30/2024. The IRS defines your lookback period as July 1 through June 30 ending the previous calendar year.
- If you owed $50,000 or less in federal taxes during this lookback period, your business is a monthly depositor and makes monthly payroll deposits.
- If you owed over $50,000 in federal taxes during this lookback period, your business is a semi-weekly depositor and makes semi-weekly payroll deposits.
For further reading about making federal tax deposits, visit the IRS website.
Setting your payroll deposit frequency
If you are a Full-Service Payroll customer, all taxes will be deposited for you, but you must enter your deposit frequency for each tax. To avoid IRS penalties resulting from wrong deposit frequency selections, we default new accounts to semi-weekly deposits. For instructions, see Entering Your Tax Deposit Frequency.
In the payroll software, you may only select either a Monthly or Semi-Weekly federal income tax deposit frequency on the Tax Deposit Frequency page.
If your business has less than $2500 in federal taxes in a quarter, even though the IRS allows you to deposit quarterly, you should select “Monthly.” This is a built-in safeguard in case your tax liability increases in the future.
For more details on depositing federal taxes, see the IRS Publication 15, Employer Tax Guide.
You can find your state and local tax deposit frequencies by referring to your coupon book or statement from the taxing authority or asking your previous payroll provider or accountant.
When will my taxes be collected?
As a full-service payroll customer, we will collect your payroll taxes as you run payroll. Typically tax collections are the first banking day before the pay date.
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